1. Short title

This Act may be cited as the "Responsive Energy Demand Unlocks Clean Energy Act" or the "REDUCE Act".

2. Aggregator bidding into organized power markets

(a) In general - Notwithstanding any prohibition established by State law or a State commission (as defined in section 3 of the Federal Power Act (16 U.S.C. 796)) with respect to who may bid into an organized wholesale electric market, each Transmission Organization shall, consistent with any applicable market rules that do not establish such a prohibition, allow aggregators of retail customers to submit bids that aggregate demand flexibility of customers of utilities that distributed more than 4,000,000 megawatt-hours in the previous fiscal year.

(b) Rulemaking - Not later than 1 year after the date of enactment of this Act, the Federal Energy Regulatory Commission shall issue a rule to carry out the requirements of subsection (a).